The stock in First High-School Education Group Co., Ltd. (NYSE: FHS) inch up to $7.08 per American depositary share on Tuesday after reporting stronger revenue and income for the fourth quarter.
The education space remains one of China’s fastest growibgn markets, a segment boosted by big fundraising, rising household income, the end of the one-child policy, and government incentives.
The Kunming-based fintech company said in a statement today that in the three months through December that its revenues were $25.1 million, representing an increase of 36.2% from a year ago. Revenues from customers were $22.7 million, an increase of 37.2% from the fourth quarter of 2019. The company said the increase in revenues was due to higher student enrollment and the increased income from management services.
Net income in the fourth quarter was $7.2 million, representing an increase of 94.6% in the same period last year.
First High-School Education reported the net operating expenses were $1.0 million, a decrease of 58.1% from last year.
The company secured roughly $50 million in capital from its IPO in March. As of December 31, 2020, it owns 19 schools and enrolled nearly 26,000 students in China.
Shaowei Zhang, the chairman and chief executive officer of First High-School Education Group, stated, “Despite temporary disruptions and short-term impact on our business caused by the Covid-19 pandemic, we experienced the fastest growth rate among the top 20 operators of private high schools in China.”
Looking forward, FHS expects total revenues to be between 770 million yuan to 820 million yuan for the full fiscal year 2021, representing an increase of 73% to 84% on a year-over-year basis.
Scoring high on Gaokao, the college entrance exams is the key milestone for many teens on a path to a successful career. FHS offers 14 high school programs, seven middle school programs and four tutorial school programs for Gaokao repeaters.